Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/21201

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DC Field

Value

Language

dc.contributor.author

Bonin, Holger

en_US

dc.date.accessioned

2009-01-28T16:20:19Z

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dc.date.available

2009-01-28T16:20:19Z

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dc.date.issued

2001

en_US

dc.identifier.uri

http://hdl.handle.net/10419/21201

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dc.description.abstract

In May 2001, Germany adopted a fundamental pension reform cutting back public pensionsand introducing personal pension accounts. The paper critically reviews the reform decisionsand evaluates their long-term viability. It is shown that the adjustment of the Public PensionScheme misses the proclaimed contribution rate and replacement ratio targets already undermoderate economic conditions. However, the new private pension plans provide scope forfurther downsizing state pensions, necessary beyond 2025. As the enacted savings ratetarget is conservative, individual pensions keep retirement income sufficient even if returns topension funds are low due to legal restrictions on savings vehicles.